[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR720.3]

[Page 190-191]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 720--DENIAL OF EXPORT PRIVILEGES--Table of Contents
 
Sec. 720.3  Final decision on administrative action denying export privileges.

    (a) Hearing. Any hearing that is granted by the ALJ shall be 
conducted in accordance with the procedures set forth in Sec. 719.14 of 
this subchapter.
    (b) Initial decision and order. After considering the entire record 
in the proceeding, the ALJ will issue an initial decision and order, 
based on a preponderance of the evidence. The ALJ may consider factors 
such as the seriousness of the criminal offense that is the basis for 
conviction, the nature and duration of the criminal sanctions imposed, 
and whether the person has undertaken any corrective measures. The ALJ 
may dismiss the proceeding if the evidence is insufficient to sustain a 
denial of export privileges, or may issue an order imposing a denial of 
export privileges for the length of time the ALJ deems appropriate. An 
order denying export privileges may be standard or non-standard, as 
provided in Supplement No. 1 to part 764 of the Export Administration 
Regulations (15 CFR parts 730 through 799). The initial decision and 
order will be served on each party, and will be published in the Federal 
Register as the final decision of the Department of Commerce 30 days 
after service, unless an appeal is filed in accordance with paragraph 
(c) of this section.
    (c) Grounds for appeal. (1) A party may, within 30 days of the ALJ's 
initial decision and order, petition the Under Secretary for Export 
Administration for review of the initial decision and order. A petition 
for review must be filed with the Office of Under Secretary for Export 
Administration, Department of Commerce, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230, and shall be served on the Office 
of Chief Counsel for Export Administration or on the respondent. 
Petitions for review may be filed only on one or more of the following 
grounds:
    (i) That a necessary finding of fact is omitted, erroneous or 
unsupported by substantial evidence of record;
    (ii) That a necessary legal conclusion or finding is contrary to 
law;
    (iii) That prejudicial procedural error occurred; or
    (iv) That the decision or the extent of sanctions is arbitrary, 
capricious or an abuse of discretion.
    (2) The appeal must specify the grounds on which the appeal is based 
and the provisions of the order from which the appeal was taken.
    (d) Appeal procedure. The Under Secretary for Export Administration 
normally will not hold hearings or entertain oral arguments on appeals. 
A full

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written statement in support of the appeal must be filed with the appeal 
and be simultaneously served on all parties, who shall have 30 days from 
service to file a reply. At his/her discretion, the Under Secretary may 
accept new submissions, but will not ordinarily accept those submissions 
filed more than 30 days after the filing of the reply to the appellant's 
first submission.
    (e) Decisions. The Under Secretary's decision will be in writing and 
will be accompanied by an order signed by the Under Secretary for Export 
Administration giving effect to the decision. The order may either 
dispose of the case by affirming, modifying or reversing the order of 
the ALJ, or may refer the case back to the ALJ for further proceedings. 
Any order that imposes a denial of export privileges will be published 
in the Federal Register.